REPUBLIC ACT NO.

7076
People's Small-scale Mining Act of 1991

Laws on Natural Resources

By: Colyne Usodan
Section 2
Declaration of Policy:

- to generate more employment opportunities and provide

an equitable sharing of the nation's wealth and natural
resources, giving due regard to existing rights as herein
provided.
Section 4

People's Small-scale Mining Program

- Implemented by the Secretary of the Department of

Environment and Natural Resources (Department)
- in coordination with other concerned government
agencies
Continuation...
Features of Small Scale Mining Program:

a) The identification, segregation and reservation of certain

mineral lands as people's small-scale mining areas;

b) The recognition of prior existing rights and productivity;

c) The encouragement of the formation of cooperatives;

d) The extension of technical and financial assistance, and

other social services;
Continuation...
e) The extension of assistance in processing and
marketing;

f) The generation of ancillary livelihood activities;

g) The regulation of the small-scale mining industry with

the view to encourage growth and productivity; and

h) The efficient collection of government revenue.

Section 5. Declaration of People's Small-scale
Mining Areas
- The Board - authorized to declare and set aside
people's small-scale mining areas
- Secretary - review the declaration and the act of setting
aside people’s small scale mining areas, immediately
giving priority to:
- areas already occupied and actively mined by
small-scale miners before August I, 1987
Continuation...
- Provided, that such areas are not considered as active mining
areas;
- Provided further, That the minerals found therein are
technically and commercially suitable for small-scale mining
activities:
- Provided, finally, That the areas are not covered by existing
forest rights or reservations and have not been declared as
tourist or marine reserves, parks and wildlife reservations,
unless their status as such is withdrawn by competent
authority,
Section 6. Future People's Small-scale Mining Areas
a) Public lands not subject to any existing right:

b) Public lands covered by existing mining rights which are not

active mining areas: and

c) Private lands, subject to certain rights and conditions,

except those with substantial improvements or in bona fide and

regular use as a yard, stockyard, garden, plant nursery, plantation,
cemetery or burial site, or land situated within one hundred meters
(100 m, ) from such cemetery or burial site, water reservoir or a
separate parcel of land with an area often thousand square meters
(10,000 sq.m.) or less.
SECTION 7. Ancestral Lands

General Rule: Not be declared as a People’s small-scale

mining are

Exception: When there is consent

Condition: priority in the awarding of small scale mining

contracts shall be given to the cultural communities.
SECTION 8. Registration of Small-scale Miners

- Register as miners with the Board, and

- May organize themselves into a cooperative in order to
qualify for the awarding of the small-scale mining
contract
SECTION 9. Award of People's Small-scale Mining Contracts.
- Awarded by the Board to:
- MIners who have vvoluntarily organized and
- Have duly registered with the appropriate agency an individual
or cooperative

- COnditionns:

- Only 1 people’s small scale mining contract may be awarded

at anyone time to a contractor who shall start mining operations within
1 year from the date of award.

- Priority be given to miners residing in the province or city

where the small scale ming area is located.
SECTION 10. Extent of Contract Area.
- Board shall determine
- the reasonable size and shape of the contract area but in no
case shall the area exceed twenty hectares (20 has.) per
contractor, and

-the depth or length or length of the tunnel or adit not

exceeding that recommended by the director taking into account
the following circumstances: a) Size of membership and
capitalization of the cooperative; b) Size of mineralized area; c)
Quantity of mineral deposits; d) Safety of miners; e) Environmental
impact and other considerations; and f) Other related
circumstances.
SECTION 11. Easement Rights:
- Determine by the Director
- Existing facilities
- In Consultation with the people affected in the area
- Subject to reasonable fees
SECTION 12. Rights under a People's
Small-scale Mining Contract
- right to mine, extract and dispose of mineral ores for
commercial purposes.

Limitation: may not be:

-subcontracted,

-assigned or

-otherwise transferred.
SECTION 13. Terms and Conditions of the Contract
-
- term of two (2) years,
- renewable subject to verification by the Board for like
periods as long as the contractor complies with the
provisions set forth in this Act,
- and confers upon the contractor the right to mine within
the contract area
Provided, That the holder of a small-scale mining contract shall
have the following duties and obligations:

a) Undertake mining activities only in accordance with a mining

plan duly approved by the Board;

b) Abide by the Mines and Geosciences Bureau and the

Small-scale Mining Safety Rules and Regulations;

c) Comply with his obligations to the holder of an existing mining

right;

d) Pay all taxes, royalties or government production share as

are now or may hereafter be provided by law;
e) Comply 'with pertinent rules and regulations on
environmental protection and conservation, particularly
those on tree-cutting; mineral-processing and pollution
control;

f) File under oath at the end of each month a detailed

production and financial report to the Board; and

g) Assume responsibility for the safety of persons working

in the mines.
SECTION 14. Rights of Claimowners.
Enter into a voluntary and acceptable contractual
agreement with the small claim minner with respect to the
small scale utilization of the mineral values from the area
under claim.
In case of disagreement, the claimowner shall be
entitled to the following rights and privileges:
- Exemption from the performance of annual work
obligations and payment of occupation fees, rental, and
real property taxes;
- free access to the contract area to conduct metallurgical
tests, explorations and other activities,
- Royalty equivalent to one and one half percent (1-1/2%)
of the gross value of the metallic mineral output or one
percent (1%) of the gross value of the nonmetallic
mineral output
SECTION 15. Rights of Private Owners.

- Be notified of any plan or petition to declare his land as

a people’s mining area.
- May oppose such plan or petition
Rights of Private Owners
- Enter into a voluntary and acceptable contractual
agreement
- Entitled to the payment of actual damages
- Royalties be paid to the owner but not to exceed 1% of
the gross value of the minerals recovered as royalty.
SECTION 16. Ownership of Mill Tailings.
- Be owned by the small scale mining contractor
- May sell the tailings, or
- Have them processed in any custom mill area

Condition:

- If the contractor decided to sell it, claim owner has the

preemptive right to purchase at the prevailing market
value
SECTION 17. Sale of Gold
- It shall be sold to the Central Bank by the miners or
their duly authorized representatives
- At a price competitive with those prevailing in the world
market regardless of volume or weight.
SECTION 18. Custom Mills.

- Establishment and operation of safe and efficient

customs mills to process minerals or ore-bearing
materials
- shall be limited to mineral processing zones
- duly designated by the local government unit
- Upon recommendation of the Board
-
Where private sector is unable to establish custom
mills:

- Government shall construct upon recommendation of

the board based on the viability of the project.
- Board shall issue licenses for the operation of custom
mills and other processing plants subject to pollution
control and safety standards.
SECTION 19. Government Share and Allotment. -

- Subject to the sharing provided in the Local

Government Code
- Sec. 290 of LGC provides 40% of the gross
collection derived by the National Government
SECTION 20. People's Small-scale Mining
Protection Fund.
-15% of the National Government’s share due to the
Government
- for Information Dissemination and training of small-scale
miners on:
- safety and environmental protection, and
- establishment of mine rescue and recovery teams
- including procurement of rescue equipment
- Available to address the needs of the small scale miners
brought about by accidents and/or fortuitous events
SECTION 21. Rescission of Contracts and
Administrative Fines.
Grounds for cancellation of contracts, & ejectment:

1. noncompliance with the terms and conditions of the contract,

or
2. violation of the rules and regulations issued by the Secretary
pursuant to this Act
3. abandonment of the mining site by the contractor

Fines: P20k to 100k

Non Payment consequencies: ineligibility for other small scale

mining contracts
SECTION 22. Reversion of People's, Small-scale
Mining Areas-

- When it can no longer be feasibly operated, or

- When the safety, health and environmental conditions
warrant that the same shall revert to the State for proper
disposition
SECTION 23. Actual Occupation bv Small-scale
Miners, -

-On or before August 1, 1987

- Actual operation of the mineral lands

- Minners shall not be dispossessed, ejected or removed

SECTION 24. Provincial/Citv Mining Regulatory Board.
- Under direct supervision and control of the Secretary (of DENR)
- Implementing Agency of the Department
- Shall exercise the ff. Powers and Functions for small scale mining:
- 1. Declare and segregate existing gold-rush area;;
- 2. Reserve future gold and other mining areas;
- 3. Award contracts to small-scale miners;
- 4.Formulate and implement rules and regulations;
- 5. Settle disputes, conflicts or litigations over conflicting claims
within a people's small-scale mining area, an area that is
declared a small-scale mining area; and
- 6. Perform such other functions as may be necessary to
achieve the goals and objectives of this Act.
SECTION 25. Composition of the Provincial/City
Board.
Chairman: DENR Representative

Members:

a. Representative of the governor or city mayor

b. 1 small scale mining representative
c. 1 big scale mining representative, and
d. Representative from a nongovernment organization -
from an environmental group
SECTION 26. Administrative Supervision over the
People's Small-scale Mining Program. -

- Secretary through his representative

- Secretary shall promulgate rules and regulations
- Priority shall be given to such rules and regulations that
will ensure the least disruption in the operations of the
samll-scale miners.
SECTION 27. PenaI Sanctions

- 6 months to 6 years, and

- Confiscation and seizure of equipment, tools, and
instruments
Quick facts:
- Currently, there are only 29 declared Minahang Bayan in the
country.
- There are around 300,000 to 500,000 small-scale miners who
depend on small-scale mining as a source of income and
livelihood.

-Business Mirror (Interview with the DENR Rep.)